Complete Book PDF (4.12MB) - World Bank eLibrary

Corruption in the Telecommunications Sector in Ethiopia: A Preliminary Overview 367
in Ethiopia considered such trust and confidence to be present. Despite
significant improvement in its record, even the FEACC is still considered
by many telecommunications stakeholders to be unduly influenced
by the government, limiting its investigations to certain areas
that do not unduly embarrass the political executive.
• Second, and most disturbing, the study identified among respondents a
marked sense of fear that is not observed in other countries. Such a fear
promotes a lack of openness and reporting. Many interviewees suggested
that if a person were to report actual or potential corrupt practices,
there was a perceived danger that he or she would be victimized
through dismissal or a lack of promotion. In some cases, a whistleblower
could, it was believed, be in physical danger. Whether or not
there is a basis in fact for such fears, the fact that they exist at all highlights
the urgent need for confidence-building measures among stakeholders
in the sector.
Recommendations
The findings of this diagnostic study highlight specific areas of concern in
Ethiopia’s telecommunications sector, centered on the appointment of
equipment suppliers, delivery and installation of equipment, and related
construction of facilities. The recommendations that arise fall into two
categories:
• Additional study in demonstrated areas of highest risk
• Corrective actions that can be taken immediately and have proven effect
in reducing the risks—whether perceived or real—of corruption.
The key to rebuilding sector confidence will be to target known areas
of high perceived risk through the introduction of improved transparency
and accountability. Over time this will serve to both facilitate and underpin
the reforms needed to reduce corruption risks and increase stakeholder
confidence in the sector.
Recommendation 1: Launch an independent audit and public inquiry into
the 2006 vendor financing and equipment supply contract and related
equipment supply processes.
A full independent audit and public inquiry, conducted in accordance
with international best practice, should examine the ETC’s equipment